FBR Capital analyst, Barton Crockett, reiterated his Outperform rating on shares of Pandora (NYSE: P) along with his price target of $16 as the company is making progress in licensing rights from labels for an on-demand launch next month.

Nothing is yet announced, but the WSJ reported August 19 that Pandora was close to reaching terms with labels to launch a $10 per month on-demand service comparable to Spotify and Apple Music, while also providing greater skip/customization capability in its ad-free, $5 per month Pandora One radio service. Gaining flexibility to enhance Pandora One, encouragingly, leverages Pandora's music genome strength, while also favoring a lower price point that could be expansive to the market.

For an analyst ratings summary and ratings history on Pandora click here. For more ratings news on Pandora click here.